893.50 Recovery/6–2448: Telegram

The Secretary of State to the Ambassador in China (Stuart)

923. Following is text Article III (Improvement of Commercial Relations) agreed by Dept, ECA and Commerce:

  • “1. The Government of China undertakes to make all practicable efforts to improve commercial relations with other countries, including measures to improve the conditions affecting the carrying on of foreign trade by private enterprises in China.
  • 2. The Government of China, in carrying out the provisions of paragraph 1 of this Article, will, among other measures, administer such import and exchange controls as are, or may be, made necessary by the exigencies of China’s international balance of payments and the foreign exchange resources available to the Government of China, in a uniform, fair and equitable manner.
  • 3. The Government of the United States of America and the Government of China will consult, upon the request of either, regarding any matter relating to the application of the provisions of this Article, including:
    measures for improving the efficiency of the administrative agencies and organs of the Government of China charged with the duty of supervising the operation of laws, regulations, rules [Page 572] and administrative and judicial decisions affecting the importation or exportation of goods or the transfer of payment therefor;
    measures giving effect to the policy statement of the President of the Executive Yuan of the Republic of China, issued to the public on August 13, 1947,28 concerning the investment of foreign capital in China, and assuring fair, equitable and nondiscriminatory treatment to enterprises in China in which American investors now or hereafter participate;
    the effect on commercial relations with the United States of America of the operations of enterprises owned or controlled by the Government of China which may be engaged in the conduct of foreign trade.”

Request Embassy’s immediate appraisal this language, particularly re possibility, if any, that it may be used as point of attack ChiGovt and U. S. by opposition groups within Kmt China and by Communists, and seriousneses such attack. If Embassy has no important reservations re this text, please transmit Fonmin immediately. Dept’s comments will follow shortly.29

  1. Not printed; this statement was almost identical to that approved by the State Council on August 1, 1947, which was summarized in telegram No. 1646, August 2, 1947, 5 p.m., Foreign Relations, 1947, vol. vii, p. 1374. The texts of both statements were transmitted to the Department with despatch No. 958, August 29, 1947, not printed (893.50/8–2947).
  2. See telegram No. 929, June 25, 8 p.m., p. 574.